Key Takeaways
- • Lone Star Funds closed Lone Star Real Estate Fund V (U.S.) LP and Lone Star Real Estate Fund V (Bermuda) LP with $5.5 billion in third-party commitments, exceeding the $5.0 billion target and reaching the $5.5 billion hard cap.
- • The fund received commitments after launching in January 2016 and was announced as the first and final closing.
- • The strategy mirrors prior Lone Star real estate funds, targeting opportunistic commercial real estate debt and equity across the Americas, Europe and Asia-Pacific.
- • Lone Star has organized 16 funds with more than $65 billion in commitments since its 1995 founding, including four previous dedicated CRE funds.
- • Recent deals cited include the roughly $7.6 billion acquisition of multifamily REIT Home Properties in June 2015 and a $590 million purchase of 38 Hyatt hotels in September 2014.
Summary
Dallas-based Lone Star Funds, a global private equity firm, announced on a Tuesday the first and final closing of Lone Star Real Estate Fund V (U.S.) LP and Lone Star Real Estate Fund V (Bermuda) LP, according to Commercial Property Executive's report by Scott Baltic. The fund received third-party commitments totaling $5.5 billion since its January launch, surpassing both its $5.0 billion target and its $5.5 billion hard cap.
According to a prepared statement, the fund's strategy "will be consistent with previous Lone Star Funds real estate funds, focusing on a broad range of financial and other opportunistic investment assets in commercial real estate debt and equity products in the Americas, Europe and Asia-Pacific." Lone Star Funds did not provide additional information requested by the publication before press time.
Since its founding in 1995, Lone Star Funds has organized 16 funds with commitments exceeding $65 billion, including four previous dedicated CRE funds. The article highlights the firm's recent deal activity as evidence of its opportunistic approach. In September 2014, Lone Star acquired a portfolio of 38 hotels from Hyatt Hotels Corp. for about $590 million, and in the same month acquired a 64-property, 20,439-unit apartment portfolio from Bell Partners Inc. and DRA Advisors LLC for more than $1.8 billion. In June 2015, it acquired multifamily REIT Home Properties for about $7.6 billion. In July 2015, it purchased three Class A and B office buildings for $25 million and two Marriott hotels for more than $61 million, all in Cincinnati.
According to a prepared statement, the fund's strategy "will be consistent with previous Lone Star Funds real estate funds, focusing on a broad range of financial and other opportunistic investment assets in commercial real estate debt and equity products in the Americas, Europe and Asia-Pacific." Lone Star Funds did not provide additional information requested by the publication before press time.
Since its founding in 1995, Lone Star Funds has organized 16 funds with commitments exceeding $65 billion, including four previous dedicated CRE funds. The article highlights the firm's recent deal activity as evidence of its opportunistic approach. In September 2014, Lone Star acquired a portfolio of 38 hotels from Hyatt Hotels Corp. for about $590 million, and in the same month acquired a 64-property, 20,439-unit apartment portfolio from Bell Partners Inc. and DRA Advisors LLC for more than $1.8 billion. In June 2015, it acquired multifamily REIT Home Properties for about $7.6 billion. In July 2015, it purchased three Class A and B office buildings for $25 million and two Marriott hotels for more than $61 million, all in Cincinnati.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.